US player Llog Exploration has confirmed that the company is considering a new standalone floating production system for its Khaleesi and Mormont discoveries in the Green Canyon area in the deep-water US Gulf of Mexico, with a potential final investment decision envisaged as soon as the end of the year.

“In the event Llog builds a new FPS, it is extremely likely that we would use our standard Delta House design, which has a peaking capacity of 100,000 barrels per day,” chief operating officer Rick Fowler told Upstream this week.

He added that, “while Llog continues to advance our evaluation in the Khaleesi-Mormont area and may make some decisions soon", he would not expect a final investment decision until the end of the year.

Upstream has previously reported that the company was weighing the development of the discovery pair via a new version of the Opti-Ex design that has been used for its Delta House project, potentially with both the hull and topsides being built overseas at Hyundai Heavy Industries.

Last year, Llog reported discoveries at the prospects of Khaleesi on Green Canyon block 389 and GC 390, as well as at Mormont on GC 478, to the US Bureau of Safety & Environmental Enforcement.

Both lie in about 3900 feet of water, and were drilled to a total depth of up to 30,625 feet, Llog revealed in an operational update this week. “Each of the two discoveries has been delineated by two wells and a sidetrack that discovered multiple oil-bearing Miocene horizons,” Llog added.

“Llog is currently working on plans for a co-development of these discoveries.

"Given the upside potential of the discoveries, the company is evaluating the need for a new FPS to co-develop the fields."

Llog's partners there include Ridgewood Energy, Red Willow, CL&F Offshore and Houston Energy.

Fowler indicated that the company is for the moment keeping its eyes on its own finds, even though other operators have also found success in the last year in the same south-eastern corner of Green Canyon.

“Llog is aware of the other industry discoveries in the area, but has not had serious discussions with those operators to consider co-development with Khaleesi-Mormont,” Fowler said.

Among the other successes in the area recently was one for Murphy Oil, which drilled the Samurai-2 appraisal well on GC 432 to just over 32,000 feet, coming across 150 feet of total pay.

The company believes it has resources on its hands exceeding the pre-drill estimate of 75 million barrels, also encountering pay zones not seen in a previous well drilled at the prospect by US independent Anadarko Petroleum.

Sidetrack operations are continuing to further delineate the discovery.

Australian player BHP has a 50% stake in GC 432 and the neighbouring block of GC 476, and has also made a range of other discoveries in the vicinity, which lies north of its Shenzi platform.

Its finds in the area in the last few years have included Shenzi North, Caicos and Wildling.

Weekly

Llog eyeing standalone FPS for finds in US Gulf